Gold And Silver Rally Offering Little Help To Australian Dollar
Precious metals have surged through Wednesday's active, but the rally in the speculative commodities group has done little for the usually highly correlated Australian dollar. Indeed, the GBPAUD, GBPAUD and AUDNZD pairs all moved sharply against the Aussie dollar (200 points, 400 points, 600 points respectively). These moves despite an 11 percent, $86.50/ounce rally - the biggest one day advance on record - to $866.10 for gold. Silver performed even better with a 14.3% surge tallying $1.50/ounce to $11.99). This broken correlation comes thanks to the stronger influence credit markets and interest rates have over the currency market right now.